Second quarter highlights:
· Net income reached $148 million, a decrease of 3.1 percent from second quarter 2016.
· Total portfolio size fell as total assets were $22.4 billion, a 1 percent decrease from year-end 2016.
· Total loan volume fell to $20.3 billion, a 0.9 percent decrease from year-end 2016.
“The current down cycle in agriculture continues to put pressure on margins for producers in our area,” said Bill Johnson, president and CEO, Farm Credit Mid-America. “However, our Association’s long-term view allows us to navigate this downturn, and we are encouraged by the resilience of our customers and overall portfolio.”
The credit quality of the Association’s portfolio declined slightly from year-end 2016, and adversely classified loans increased to 3.9 percent of the portfolio from 3.5 percent in December. The decline is a reflection of the current challenges in the agriculture industry, with below-average commodity prices and tight or negative margins.
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